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Deed of Trust

Deed of Trust

A deed of trust is a form of evidence that a debt exists. In most situations, it is the documentation of a transfer of property to another person or party for them to hold as security. In many states, a deed of trust is a common method used to finance a property of real estate. It is also a piece of documentation that is used within public records. On a deed of trust, there is a legal description of a property as well as the name of the borrower and lender. In addition, this instrument also shows how much a person paid for a piece of property and also any maturity dates of the loans taken out to purchase the property. Furthermore, many times, a deed of trust will specify any late fees or early repayment penalties that exist as well as whether the loans used to purchase the property are accompanied with adjustable or fixed interest rates.